No insurance company, association or exchange (hereinafter
the "insuring agent") doing business in the Commonwealth of Pennsylvania shall
pay a claim of a named insured for fire damage to a structure located within
Lower Salford Township (hereinafter the "municipality"), where the amount
recoverable for the fire loss to the structure under all policies exceeds
$5,000, unless the named insured or insuring agent is furnished by the Municipal
Treasurer with a municipal certificate pursuant to Section 508(b) of Act 98
of 1992[1] and unless there is compliance with Section 508(c) and (d) of
Act 98 of 1992 and the provisions of this article.

Where, pursuant to Section 508(b)(1)(i) of Act 98 of
1992, the Municipal Treasurer issues a certificate indicating that there are
no delinquent taxes, assessments, penalties or user charges against real property,
the insuring agent shall pay the claim of the named insured; provided, however,
that if the loss is agreed upon by the named insured and the insuring agent
equals or exceeds 60% of the aggregate limits of liability on all fire policies
covering the building restructure, the following procedures must be followed:

The insuring agent shall transfer from the insurance
proceeds to the designated officer of the municipality in the aggregate of
$1,000 for each $20,000 of a claim and for each fraction of that amount of
a claim, this subsection to be applied such that if the claim is $20,000 or
less, the amount transferred to the municipality shall be $1,000.

If at the time of a proof of loss agreed to between the
named insured and the insuring agent, the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the building
or other structure, the insuring agent shall transfer to the municipality
from the insurance proceeds the amount specified in the estimate.

After the transfer, the named insured may submit a contractor's
signed estimate of the costs of removing, repairing or securing the building
or other structure, and the designated officer shall return the amount of
the funds transferred to the municipality in excess of the estimate of the
named insured, if the municipality has not commenced to remove, repair or
secure the building or other structure.

The designated officer shall place the proceeds in the
separate fund to be used solely as security against the total costs of removing,
repairing or securing the building or structure which are incurred by the
municipality. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the municipality in connection with
such removal, repair or securing of the building or any proceedings related
thereto.

It is the obligation of the insuring agent when transferring
the proceeds to provide the municipality with the name and address of the
named insured. Upon receipt of the transferred funds and the name and address
of the named insured, the designated officer shall contact the named insured,
certify that the proceeds have been received by the municipality and notify
the insured that the procedures under this subsection shall be followed.

When repairs, removal or securing of the building or
other structure have been completed in accordance with all applicable regulations
and orders of the municipality and the required proof of such completion received
by the designated officer, and if the municipality has not incurred any costs
for repairs, removal or securing, the fund shall be returned to the named
insured. If the municipality has incurred costs for repairs, removal or securing
of the building or other structure, the cost shall be paid from the fund,
and if excess funds remain, the municipality shall transfer the remaining
funds to the named insured.

To the extent that interest is earned on proceeds held
by the municipality pursuant to this subsection and not returned to the named
insured, such interest shall belong to the municipality. To the extent that
proceeds are returned to the named insured, interest earned on such proceeds
shall be distributed to the named insured at the time that the proceeds are
returned.

Nothing in this subsection shall be construed to limit
the ability of the municipality to recover any deficiency. Furthermore, nothing
in this subsection shall be construed to prohibit the municipality and the
named insured from entering into an agreement that permits the transfer of
funds to the named insured of some other reasonable disposition if the damaged
property has been negotiated.

The Board of Supervisors may by resolution adopt procedures and regulations
to implement Act 98 of 1992[1] and this article and may by resolution fix reasonable fees to
be charged for municipal activities of certificates and bills, performance
of inspections and opening separate fund accounts.

An owner of property, any named insured or any insuring agent who violates
this article shall pay a civil penalty not to exceed $600 per violation. When
the penalty imposed for the violation of this article is not voluntarily paid
to the Township, the Township shall initiate a civil enforcement proceeding
before a District Justice. The civil enforcement proceeding shall be initiated
by a complaint or by such other means as may be provided
by the Pennsylvania Rules of Civil Procedure. In addition to or in lieu of
civil actions before a District Justice, the Township may enforce the ordinance
in equity. In any case where a penalty for a violation of this article has
not been timely paid and the person upon whom the penalty is imposed is found
to have been liable therefor in civil proceedings, a violator shall be liable
for the penalty imposed, including additional daily penalties for continuing
violations, plus court costs and reasonable attorney's fees incurred
by the Township in the enforcement proceedings.